1. THAILAND GROUP 8 SECTION 1 Harini-DM15118 | Rukmani-DM15144 | Priyanka Patel-DM15138 | Pavithra-DM15134 Sandra-DM15148 | Amal-DM15105 | Pradeepta-DM15136 |Arshiya-DM15110

2. EVOLUTIONEVOLUTION

3. EVOLUTIONEVOLUTION

4. EASE OF DOING BUSINESS IN THAILAND  FACTORS THAT AID BUSINESS Openness to global markets Productive and Efficient Manpower Manufacturing Excellence Conducive business environment Investor protection Good quality exports Strong transport and infrastructure facilities  POLICIES THAT AID BUSINESS GROWTH FTAs with EU, ASEAN countries, U.S Non- tariff barriers or reduction in import tariff barriers Better regulatory policies Intellectual Property Protection  REASONS WHY INDIAN COMPANIES PREFER SINGAPORE Good infrastructure facility. Government invests heavily in developing the infrastructure. Inflation is as low as 3% and interest rates is at a reasonable 2.8%. Debt is well under control ensuring stable economic environment Labour costs are low especially in manufacturing sector. High good exports from India to Thailand EODBEODB

5. LPILPI LOGISTICS PERFORMANCE INDEX IN THAILAND According to World Bank Doing Business Report, Cost of exports and imports in Thailand is well below the regional average. Thailand has streamlined its customs procedures by using online processing and payment. In 2008, the country established national single window (NSW) that provides e-Customs service to facilitate international trade transactions. Logistics performance index ( 1=low to 5=high)IndiaThailand Efficiency of customs clearance2.772.96 Competence and quality of logistics services3.142.98 Ease of arranging competitively priced shipments2.983.21 Frequency with which shipments reach consignee within scheduled or expected time3.583.63 Ability to track and trace consignments3.093.18 Quality of trade and transport2.873.08 Overall3.083.18 PERFORMANCE COMPARISON

6. EVOLUTION OF INDUSTRIAL CLUSTERS INDUSTRYINDUSTRY PeriodIndustrial Sector Evolution Prior to 1945 Thailand opened up to pre-industrial era The Bowring Treaty, Harris Treaty, Roberts Treaty – gave sanctions to British & American traders 1945 - 1985 Shift from agricultural –product focused trade to textiles and processed goods 1985 - 1997 Shift from import-substitution to export-orientation – led to industrial development Manufacturing constituted 19.8% of GDP in the 1980s Large- scale industrial development e.g. – Eastern Seaboard Development Program 1997 - 2006 Emergence of banking sector & services industry Slowdown in manufacturing sector – persistent deficit in the BoT of manufactured goods 2006 onwards Technological upgrades made for resource-based industries 2010 – political uncertainty & 2008 recession – caused decline in consumer & investor confidence Amendments in the Customs Act introduced SME Promotion Act & SME Promotion Committee established

7. FDI,FII and other Investments INVESTMENTSINVESTMENTS  Progressive FDI allowed in service industries – esp. financial & communication  Foreign equity participation limit of 25% lifted in banking & financial except insurance services  Board of Investment introduced a new FDI policy in 2000:  100% foreign shareholding in all activities allowed except the ones listed under List One  SMIs having an investment of more than 1 million Baht could avail of investment incentives  Businesses with investments of above 10 million Baht would need to obtain ISO 9000 quality certificates Increase in Thailand’s Outward FDI between 2003-2011, aimed at obtaining knowledge and technology access from abroad – shift from Inward FDI to outward FDI Outward FDI as a substitute to domestic investments and also as complementary to domestic investments

8. SingaporeThailandMalaysiaIndonesiaPhilippinesVietnam LPI4.19(1)3.31(31)3.48(27)3.01(43)2.69(65)2.89(53) CI5.61(2)4.54(37)5.03(24)4.53(38)4.29(59)4.18(70) CPI86(5)35(102)50(53)32(114)36(94)31(116) EODB118612010899 Stages of developme nt Innovation driven Efficiency Driven Trans from efficiency driven to innovation driven Efficiency driven Trans from factor to efficiency driven Factor Driven Areas of Improvement Logistics in agriculture sector still lacks efficiency leading to high operational costs and unnecessary waste. Nation’s Rail system development and water transport system has not developed adequately. Thus, lower cost logistics has become intangible Comparison with other Countries COMPARISONCOMPARISON